Prices of one good change while prices are held constant

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Reference no: EM13839436

1. Which of the following is not one of the services the Fed provides to commercial banks?

a. Clearing checks

b. Insuring customer accounts for up to $100,000

c. Supplying currency

d. Holding reserves

e. Occasionally lending money

2. If the prices of one good change while other prices are held constant,

a. there is an income effect as real income changes.

b. there is a substitution effect as relative prices change.

c. the marginal utility per dollar spent on that good will change.

d. the quantity demanded of that good will change.

e. All of these choices.

Reference no: EM13839436

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